Strong Wheat Sales Top Weekly Report

Another very good week of wheat sales topped the list of export business in Thursday export sales report, though corn and soybean totals were disappointing as their old crop marketing year winds down.

Wheat sales and shipments reached a marketing year high, led by big purchases, already reported, by Iran. Most of the business was for hard red winter wheat. Sales totaled 34.2 million bushels, with shipments as 23.2 million, both well above USDA's forecast for the marketing year. It's unlikely wheat business can continue at this torrid pace — buyers appear to be snapping up newly harvested wheat hoping to rebuild inventories depleted during this spring's run to all-time record highs.

Corn and soybean sales were a bit disappointing, however. Corn sales totaled 27.2 million bushels, with most of the activity in new crop. Shipments were good at 45.5 million, but that still leaves a deficit to the rate needed to reach USDA's Aug. 31 target.

Soybean totals actually exceeded trade guesses at 16.1 million bushels, but old crop totals were negative as buyers roll to new crop delivery. Chinese purchases barely registered in the weekly report, which could give the market pause unless weather concerns and outside influences dominate again.

Source: USDA, Reuters